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Essentials of a More Secure Retirement

Key principles and practices to reach your retirement goals 

 

Retire Well

Your ability to achieve a secure retirement and live comfortably after your working years depends on how you get started, how you keep it going, and invest wisely. Why is this important?

A more secure retirement depends on:

  • how long you are retired,

  • how much you spend before and after retirement,

  • how much you have saved, and

  • how well you invest.

 

Get Started

If you've not yet initiated a savings program, start today — the hardest step is getting started. So, how to begin?

  • Review your finances, and ensure that you can spend less than you earn.

  • Create a budget that includes regular savings, and stick to it.

  • Open a savings account at your bank or building society. This is the easiest way to start saving. Find out why it is important to save.

  • Work toward having an emergency fund so that you can insulate yourself from having to tap into your retirement savings during an emergency.

  • Set an automatic deduction for each paycheck to start building your savings. Even seemingly small contributions can be a great start because time works for you. Find out ways to get more from your paycheck.

 

For more information and additional resources about investing, visit the Forbes/CFA Institute Investment Course.

 

Keep it Going

The key to long-term success is establishing and then sticking to your savings plan. This is important for a more secure retirement. So, be disciplined and remember that your savings program is for your future.

  • Each contribution will add up over time, so get started! There are important benefits to starting early and continuing to invest consistently.

  • Seek financial advice from a trusted financial adviser where available. Financial professionals can help you understand your savings needs and design a savings plan appropriate for you. Understand your rights as a consumer of financial services by reviewing the Statement of Investor Rights.

  • Save as much extra money as you can. When you have some money left at the end of the month or receive money you didn’t expect — perhaps a bonus or an inheritance — do something nice for yourself, but try to save the rest.

  • Save regularly and strive to increase the amount you set aside each year.

  • Understand more about the rules on how much to save and how to invest.

  • Look at the balance between saving and reducing debt.

     

Invest Wisely

Establish a low-cost, globally diversified portfolio that’s appropriate for your long-term goals

  • A credentialed financial adviser can help you with this undertaking. Make sure that you and your adviser review your retirement needs and your investments regularly. One way to determine your future retirement needs is to find a retirement calculator that takes into account pension and retirement opportunities in your local area.

  • Use a broadly diversified portfolio of global stocks and bonds. The mix of the amount of stocks versus bonds depends, in part, on your age (time to retirement) and your ability to tolerate market turbulence or risk.

  • Seek low-expense products. Returns are only expected, but expenses are certain. Transaction costs and fees are your enemy because they reduce the amount you save. Be sure to implement your plan with low-cost funds, and be mindful of commissions, front-end loads, and other expenses. Learn more about the impact of fees on retirement savings.

  • Consider the need for insurance, including health insurance, inexpensive life insurance, disability insurance, umbrella liability insurance, and low-cost annuities (PDF) where appropriate. A qualified adviser can assist with a plan designed for your needs.

 

DOWNLOAD THE ESSENTIALS OF A MORE SECURE RETIREMENT

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